Skip to main content

Canadian construction and engineering firm SNC-Lavalin on Thursday reported a lower-than-expected profit as expenses soared mainly due to its acquisition of WS Atkins.

Montreal-based SNC closed the C$3.6 billion acquisition of British engineer WS Atkins in July. The deal helped SNC-Lavalin boost its nuclear, rail, transportation and infrastructure businesses, while cutting exposure to the oil and gas industry.

WS Atkins, now the engineering, design, project management (EDPM) segment of SNC-Lavalin, contributed C$700 million ($545 million) to the company’s first-quarter engineering and construction revenue, which rose 32.4 percent to C$2.37 billion.

Story continues below advertisement

Expenses jumped to C$42 million from C$13 million.

The company’s net income attributable to shareholders fell to C$78.1 million, or 44 Canadian cents per share, in the quarter ended March 31, from C$89.7 million, or 60 Canadian cent per share, a year earlier.

Excluding items, the company earned 51 Canadian cents per share, below the average analyst estimate of 55 Canadian cents, according to Thomson Reuters I/B/E/S.

Revenue rose 31.5 percent to C$2.43 billion

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter